By Augustine Osayande, PhD
The Debt Management Office (DMO) on Friday unveiled Nigeria’s borrowing plans for the year 2020.
Director-General of the DMO, Ms Patience Oniha, disclosed this during a presentation on public debt at the Nigerian Airforce Conference Centre and Suites, Kado District, Abuja.
According to Oniha, the plans were based on the new borrowings in the 2020 Appropriation Act, which comprises N850 billion and N744.99 billion for external and domestic borrowing respectively.
“The new domestic borrowings will be raised through FGN bonds, Sukuk, FGN saving bonds and possibly green Bonds. “For the external borrowing, the strategy is to first seek out concessionary and semi-concessionary loans due to the lower interest rate and longer tenors. Any shortfall thereafter may be raised from commercial sources”, Oniha said.
She stated that the new borrowing would be a collective decision of the executive and the legislatures.
“Borrowing is not approved by one man, there are laws and regulations it must follow”, Oniha also said.
She added that the total debt as a percentage of GDP was 18.47% as at September 2019 and it was well within the limit of 25% and fares better in comparison with the Debt/GDP ratios of countries such as the USA, UK and Canada with ratios of 105%, 85% and 90% respectively for same period.